Four objectives seven solutions in 2023 budget estimate


The seminar
The seminar

At the seminar, Deputy Director of the State Budget Department (Ministry of Finance) Nguyen Minh Tan said that based on the 2022 budget performance, assessing and forecasting the world and domestic political and economic situation in 2023, the Ministry of Finance has submitted to the National Assembly the 2023 State budget estimate.

Accordingly, in terms of the forecast of the world economic situation in 2023, with the policy of prioritizing inflation control, the monetary policy in many major economies has been tightened rapidly, causing economic growth to slow down, even the risk of recession in some economies; the price of oil and many commodities such as food and input materials continues to be at a high level, putting great pressure on global inflation; and geopolitical conflicts, epidemics and climate change still have potential risks.

Besides the foundation of economic recovery from the previous year, the domestic economy continues to face internal challenges: productivity, quality, efficiency, resilience and competitiveness are not high; financial markets, capital markets have been affected by complicated movements of world markets.

Deputy Director of State Budget Department Nguyen Minh Tan
Deputy Director of State Budget Department Nguyen Minh Tan

Regarding the state budget objectives in 2023, Mr. Nguyen Minh Tan said, there are four main objectives including supporting socio-economic recovery and development; restructuring the state budget and public debt associated with effective mobilization and use of financial resources, contributing to controlling inflation, ensuring major balances of the economy; ensuring fund for wage reform and social insurance policy; boosting implementation of the mechanism of autonomy and self-financing for the public service delivery units.

Regarding specific objectives, the 2023 State budget is estimated at VND 1,620.7 trillion, about 0.4% higher than the 2022 estimate. The mobilization rate into the state budget is about 15.7% of GDP, of which taxes and fees are about 13.3% of GDP.

In which, domestic revenue is estimated at VND1,334.2 trillion, accounting for 82.3%, up 3.2% compared to the 2022 estimate 2022; crude oil revenue is VND42 trillion, down 38.2% compared to the 2022 estimate, accounting for 2.6%; revenue from import-export activities VND239 trillion, down 2.8% compared to the 2022 estimate, accounting for 14.8% and aid revenue VND5.5 trillion, accounting for 0.3%.

Regarding state budget spending, the state budget spending in 2023 is estimated at VND 2,076.2 trillion, an increase of 16.3% compared to the 2022 estimate. Of which, recurrent expenditure is VND 1,172.3 trillion, up 5.4% compared to the 2022 estimate, accounting for 56.5%; interest payment is VND102.9 trillion, down 0.8% compared to the 2022 estimate, accounting for 5%; development and investment expenditure is VND 726.7 trillion, up 38.1% compared to the 2022 estimate, accounting for 35% and other remaining expenditures are VND 74.3 trillion, accounting for 3.5%.

Regarding the state budget deficit and public debt, the state budget deficit in 2023 is expected to be VND455.5 trillion, equivalent to 4.42% of GDP, of which the central budget deficit is about VND430.5 trillion, equivalent to 4.18 % of GDP and local budget deficit is VND25 trillion, equivalent to 0.24% of GDP. Regarding public debt, by the end of 2023, public debt will be about 44-45% of GDP.

At the seminar, the attendants agreed on the positive points of the draft 2023 budget estimate. Accordingly, the draft assesses and explains basic orientations on changes in state budget spending, and changes in main revenues and expenditures. The draft also assesses and reviews the 2022 estimate in terms of State budget revenue and expenditure.

In addition, in terms of state budget expenditure estimates, the draft shows a change of spending structure in a more appropriate manner (reducing recurrent spending).

Development investment spending accounts for 35% of total state budget spending, increasing by 38.1% in value compared to the 2022 estimate; recurrent spending accounts for 56.5% of total state budget expenditure, up 5.4% compared to the 2022 estimate.

Some said that the draft 2023 State Budget estimate lacks detailed information on investment spending and a list of investment expenditure estimates of the central budget. Disbursement of public investment is often slow, affecting economic growth and the operation of the business system. Therefore, there is a need for more detailed discussions on public investment spending in the 2023 State Budget Estimate both at the central and local levels.

To achieve the above objectives, seven main groups of solutions are proposed, Said Mr. Nguyen Minh Tan.

First, improving the operational efficiency of the political system in association with continuing reform, apparatus restructuring and staff streamlining, and reform of financial mechanism of public service delivery units;

Second, focusing on restructuring and improving the operational efficiency of state-owned enterprises, with a focus on state-owned groups and corporations; accelerating the equitization and divestment of state capital in enterprises;

Third, improving the legal framework, the inspection and supervision mechanism to ensure the stable and safe operation of the financial market and financial services; strictly handling violations and promoting fair competition among economic sectors;

Fourth, promoting administrative reform in combination with comprehensive national digital transformation, building e-government; continuing to substantially improve the business investment environment, improving national competitiveness, and increasing publicity and transparency;

Fifth, consistently giving the priority target of maintaining the macroeconomic foundation, controlling inflation, ensuring major balances, promoting growth, sustainable recovery and development in all economic and social sectors; actively implementing drastically and effectively the tasks and solutions of the Socio-economic Recovery and Development Program, ensuring progress and quality;

Sixth, offering solutions to increase revenue, striving to complete the assigned revenue estimate at the highest level to ensure resources to serve socio-economic development goals on the basis of improving institutions, policies and laws on state budget revenue, and strengthening revenue management.

Finance Ministry announces State budget estimates for 2022 Finance Ministry announces State budget estimates for 2022

Seventh, continuing to restructure state budget spending in association with the objectives of economic restructuring and sustainable development; improving the efficiency of management, allocation and use of the state budget; strengthening financial and ensuring sustainability, national financial security and safety.


Leave a Reply